[The following paragraph was effective for audits of financial statements for periods beginning on or after June 15, 2003. It was amended as a result of the adoption of Auditing Standard No. 5, effective for audits of fiscal years ending on or after November 15, 2007. See PCAOB Release 2007-005A.

AU 328.41

Events and transactions that occur after the balance-sheet date but before completion of fieldwork (for example, a sale of an investment shortly after the balance-sheet date), may provide audit evidence regarding management’s fair value measurements as of the balance-sheet date. fn 7 In such circumstances, the audit procedures described in paragraphs .26 through .40 may be minimized or unnecessary because the subsequent event or transaction can be used to substantiate the fair value measurement.

fn 7The auditor’s consideration of a subsequent event or transaction, as contemplated in this paragraph, is a substantive test and thus differs from the review of subsequent events performed pursuant to section 560, Subsequent Events.